Industrial developer CTP said its profits reached a fresh high of €1.1 billion during 2024, almost 15% up year-on-year, driven by substantial growth in rental income, leasing activity, and a strong development pipeline.

Bucharest recorded a 20% decline in office leasing, to 339,000 sqm, in 2024, compared to the previous year, although it remained above the five-year average, according to a Colliers report.

Evo Properties, the owner of London & Oslo office buildings in Western Bucharest, has reached a 50% lease rate this year and aims to reach an occupancy rate of 85% by the end of 2025. At the same time, it continues to transform the project into a mixed-use hub that will include a premium hotel.

Industrial developer CTP recorded a rental income of €488.4 million in the first nine months of the year, up 15.9% y/y, while the annualized rental income amounted to €702 million, with occupancy rate at 93%. 

Meta Estate Trust has invested in a plot of land near Victoriei Square in central Bucharest, where it plans to develop a building that will be leased to a chain of private medical clinics.

Sirius Offices, the 30,000 sqm office complex based in Belgrade’s business district, has reached 100% occupancy with a mixed roster of tenants from finance, IT & telecoms, and construction. 

New office projects with a combined leasable area of nearly 64,000 sqm were completed during H1 2024, with the volume soaring almost three-and-a-half times compared to the same period of 2023, according to a BNP Paribas Real Estate report.  

Yitzhak Hagag, Co-Founder and Shareholder, Hagag Development Europe, spoke with Property Forum about the increasing demand for the company’s boutique office buildings in central Bucharest and the strong sales book for its residential developments in the city. The company has a development budget totalling €195 million.

As development activity has slowed down, the focus is shifting to managing the existing stock across the whole commercial real estate market. Owners and other stakeholders have to adapt rapidly to serve changing demand from occupiers, said Benjamin Perez Ellischewitz MRICS, Principal at Avison Young in Hungary, while answering Property Forum’s questions at Mipim in Cannes.

Industrial developer Accolade published its year-end results for 2023. Despite lower construction activity across the market overall, Accolade’s total lease volume remained the same as 2022 thanks to renegotiations. Accolade either leased or extended the lease of existing agreements for 555,000 sqm worth of properties (of which 168,000 sqm is part of the fund’s portfolio). Furthermore, total rental income grew by 26% to €148 million (with nearly €100 million falling under the fund’s portfolio) over the course of last year. By expanding into Croatia, 2023 also saw Accolade further grow its operation through the addition of another European country.